California Code of Regulations
Title 25 - Housing and Community Development
Division 1 - Housing and Community Development
Chapter 7 - Department of Housing and Community Development Programs
Subchapter 10 - Rental Housing Construction Program
Article 4 - Application Procedure and Review
Section 7834 - Applications for Annuity Funds

Universal Citation: 25 CA Code of Regs 7834

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) Application for annuity fund payments shall be made on the Department's application form and provide all required information.

(b) When the Department determines that assistance from the development payments account is insufficient to provide affordable rents to eligible households in assisted units, assistance may be authorized from the annuity fund.

(d) Assistance from the annuity fund shall be used for the purpose of reducing rent levels in assisted units so that rents in those units remain affordable to eligible households. Such assistance shall be used to subsidize approved operating costs of the assisted units. "Operating costs" means reasonable and justifiable costs for the following items:

(1) management, including a management fee (which includes all indirect and direct costs of collecting rents and any salary or other payment to an on-site manager), advertising, legal, accounting, and telephone;

(2) operations, including heating and lighting for common areas, water, elevator maintenance, common area maintenance and supplies, garbage and trash removal, payroll and payroll taxes, insurance, janitorial supplies, ground and drives maintenance, exterminating, and office supplies;

(3) maintenance, including decorating and repairs;

(4) vacancy reserve;

(5) replacement reserve;

(6) real estate taxes;

(7) in the case of cooperatives, an occupancy reserve which shall be for the purpose of providing downpayment loans to occupants of assisted units within the cooperative; and

(8) in the case of cooperatives, a surplus payment reserve which shall be for the purpose of reducing carrying charges to a household which initially occupied an assisted unit within the cooperative and whose income exceeds the income limits established by this Program.

(e) Applications for payments from the annuity fund, in addition to other information required by the Department, shall include:

(1) the anticipated amount of assistance, required, based on cost projections provided by the Department, and

(2) a description of how the annuity payments will be used for eligible costs to reduce rents to ensure the affordability of assisted units consistent with the fiscal integrity of the rental housing development.

1. Amendment filed 11-13-80 as an emergency; effective upon filing (Register 80, No. 46). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 3-13-81.
2. Certificate of Compliance transmitted to OAL 3-13-81 and filed 4-14-81 (Register 81 No. 16).
3. Amendment of subsection (d) filed 10-25-81; effective upon filing pursuant to Government Code Section 11346.2(d) (Register 82, No. 44).

Note: Authority cited: Section 50737, Health and Safety Code. Reference: Sections 50738, 50748, Health and Safety Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.